1 Sales Planning Chapter – 1 Development and Role of Selling in Marketing.

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Sales PlanningSales Planning

Chapter – 1Chapter – 1

Development and Role of Selling in Development and Role of Selling in MarketingMarketing

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The Nature and Role of SellingThe Nature and Role of Selling

The simplest way to think of the nature of The simplest way to think of the nature of selling is that its selling is that its function is to make a salefunction is to make a sale

Characteristics of Modern Selling:Characteristics of Modern Selling: Customer retention and deletion 80/20 ratioCustomer retention and deletion 80/20 ratio Database and knowledge management new technology internet, mobile Database and knowledge management new technology internet, mobile

and laptopand laptop Customer relationship management ,long relationship, win to winCustomer relationship management ,long relationship, win to win Marketing the products involve in marketing activities Marketing the products involve in marketing activities Problem solving and system selling knowledge about any problemProblem solving and system selling knowledge about any problem Satisfying needs and adding valueSatisfying needs and adding value

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Success Factors for Professional Success Factors for Professional SalespeopleSalespeople

The top ten success factors in selling:The top ten success factors in selling: Listening skillsListening skills Follow-up skillsFollow-up skills Ability to adapt sales style from situation to situationAbility to adapt sales style from situation to situation Tenacity – sticking to the taskTenacity – sticking to the task Organizational skillsOrganizational skills Verbal communication skillsVerbal communication skills Proficiency in interacting with people at all levels within an organizationProficiency in interacting with people at all levels within an organization Demonstrated ability to overcome objections Demonstrated ability to overcome objections Closing skillsClosing skills Personal planning and time management skillsPersonal planning and time management skills

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Types of SellingTypes of Selling

Selling job varies according to the nature of the Selling job varies according to the nature of the selling task.selling task.

They are:They are: Order-takers Order-takers respond to already committed respond to already committed

customerscustomers Order- creatorsOrder- creators do not directly receive orders since do not directly receive orders since

they talk to specifiers rather than buyersthey talk to specifiers rather than buyers Order- gettersOrder- getters attempt to persuade customers to place attempt to persuade customers to place

an order directlyan order directly

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Order- takersOrder- takers: There are three types of order : There are three types of order takers. They are takers. They are

Inside order- takersInside order- takers – the sales person’s task is – the sales person’s task is purely transactional – receiving payments and purely transactional – receiving payments and passing over the goods, telemarketing passing over the goods, telemarketing

Delivery salespersonDelivery salesperson – the sales person’s task is – the sales person’s task is primarily concerned with delivering the product primarily concerned with delivering the product example milk, newspaper example milk, newspaper

Outside order takersOutside order takers visit customers , but their visit customers , but their primary function is to respond to customer primary function is to respond to customer requests rather than actively persuade (replce requests rather than actively persuade (replce telemarketing)telemarketing)

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Order – creatorsOrder – creators are called Missionary sales are called Missionary sales people, their selling task is to educate and build people, their selling task is to educate and build good will. Examples Medical representatives good will. Examples Medical representatives call on the doctors to make them specify their call on the doctors to make them specify their medicines to the patients, similarly even in the medicines to the patients, similarly even in the building industry architects act as specifiersbuilding industry architects act as specifiers

Order gettersOrder getters consists of those in selling jobs consists of those in selling jobs where a major objective is to persuade where a major objective is to persuade customers to make a direct purchasecustomers to make a direct purchase

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Types of order getters are:Types of order getters are: New business sales people – whose task is to get New business sales people – whose task is to get

new customersnew customers Organizational salespeople whose main job is to Organizational salespeople whose main job is to

maintain close and long-term relationship with maintain close and long-term relationship with organizational customers. The selling job organizational customers. The selling job involve team sellinginvolve team selling

Consumer sales people sell physical products Consumer sales people sell physical products and services to individuals example, cars, and services to individuals example, cars, insurance and rewarded with commissioninsurance and rewarded with commission

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Technical support sales people are group of Technical support sales people are group of order getters who provide sales support to front- order getters who provide sales support to front- line sales people line sales people

Merchandisers provide sales support in retail Merchandisers provide sales support in retail and wholesale selling situations example, give and wholesale selling situations example, give advice on display, check stock levels and advice on display, check stock levels and maintain contact with store managersmaintain contact with store managers

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The nature and role of sales management:The nature and role of sales management: The emphasis is on the word managementThe emphasis is on the word management Nowadays the sales manager is expected to play Nowadays the sales manager is expected to play

a much more strategic role in the company and a much more strategic role in the company and is required to make a key input into the is required to make a key input into the formation of the company plans. formation of the company plans.

Apart from being an accountant, a planner, a Apart from being an accountant, a planner, a personnel manager and a marketer.personnel manager and a marketer.

In order to fulfill these roles the sales managers In order to fulfill these roles the sales managers will have to undertake the will have to undertake the following specific following specific duties and responsibilitiesduties and responsibilities

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Determination of sales force objectives and Determination of sales force objectives and goalsgoals

Forecasting and budgetingForecasting and budgeting Sales force organizationSales force organization Sales force sizeSales force size Territory design and planningTerritory design and planning Sales force selection, recruitment and trainingSales force selection, recruitment and training Motivating the sales forceMotivating the sales force Sales force evaluation and controlSales force evaluation and control

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Marketing ConceptMarketing Concept

In tracing the development of the marketing In tracing the development of the marketing concept it is customary to chart concept it is customary to chart three three successive stages in the evolution of modern successive stages in the evolution of modern business practice. business practice.

They areThey are Production orientationProduction orientation Sales orientationSales orientation Marketing orientationMarketing orientation

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Production orientation:Production orientation: This era was This era was characterized by focusing company efforts on characterized by focusing company efforts on producing goods or services. More specifically, producing goods or services. More specifically, management efforts were aimed at achieving management efforts were aimed at achieving high production efficiency, often through the high production efficiency, often through the large scale production of standardized items.large scale production of standardized items.

Sales orientation:Sales orientation: The sales oriented company is The sales oriented company is one where the focus of the company effort one where the focus of the company effort switches to the sales function. The main issue switches to the sales function. The main issue here is not how to produce but, having products, here is not how to produce but, having products, how to ensure that this production is sold. how to ensure that this production is sold.

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Marketing Orientation:Marketing Orientation: The marketing concept The marketing concept holds that the key to successful and profitable holds that the key to successful and profitable business rests with identifying the needs and business rests with identifying the needs and wants of customers and providing products and wants of customers and providing products and services to satisfy them.services to satisfy them.

Market segmentation and targeting are the two Market segmentation and targeting are the two of the most useful concepts in marketingof the most useful concepts in marketing

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The marketing mix in the case of goods includeThe marketing mix in the case of goods include 4 Ps4 Ps ProductProduct PricePrice PromotionPromotion PlacePlace Product Product covers anything a company offers to customers covers anything a company offers to customers

to satisfy their needs. In addition to physical, tangible to satisfy their needs. In addition to physical, tangible products offered for sale, there are also services and products offered for sale, there are also services and skills. There are a number of ways of classifying skills. There are a number of ways of classifying products , depending upon the basis chosen for products , depending upon the basis chosen for classification.classification.

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The product life cycleThe product life cycle is somewhat similar to the life is somewhat similar to the life cycle of humans and has four distinct stages. The stages cycle of humans and has four distinct stages. The stages areare

IntroductionIntroduction GrowthGrowth MaturityMaturity DeclineDecline Implications of the product life cycleImplications of the product life cycle The first obvious implication of the concept is that even The first obvious implication of the concept is that even

the most successful products have a finite life.the most successful products have a finite life. A second implication of the life-cycle concept is that A second implication of the life-cycle concept is that

different marketing and sales strategies may be different marketing and sales strategies may be appropriate to each stageappropriate to each stage

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Product adoption and diffusionProduct adoption and diffusion:: This theory was put forward by Everett Rogers This theory was put forward by Everett Rogers

in 1962 and is closely related to product life in 1962 and is closely related to product life cycle.cycle.

It describes innovative behavior and holds that It describes innovative behavior and holds that the characteristics of a new product can affect its the characteristics of a new product can affect its rate of adoptionrate of adoption

Consumers are placed into one of five adopter Consumers are placed into one of five adopter categories, each with different behavioral categories, each with different behavioral characteristics. They are characteristics. They are

Innovators, Early adopters, Early majority, Late Innovators, Early adopters, Early majority, Late majority and Laggardsmajority and Laggards

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PricingPricing As with the element of the mix, As with the element of the mix, pricing pricing

decisionsdecisions encompass a variety of decision areas encompass a variety of decision areas A vital element in marketing is the buying A vital element in marketing is the buying

power of customerspower of customers In determination of price levels, a number of In determination of price levels, a number of

factors must be considered. The main factors factors must be considered. The main factors include the following:include the following:

Company objectives, Marketing objectives, Company objectives, Marketing objectives, Demand considerations, Cost considerations, Demand considerations, Cost considerations, Competitor considerationsCompetitor considerations

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DistributionDistribution

In its broadest sense distribution is concerned with In its broadest sense distribution is concerned with all those activities required to move goods and all those activities required to move goods and materials into the factory, through the factory and to materials into the factory, through the factory and to the final consumerthe final consumer

Some of the decision areas encompassed in the Some of the decision areas encompassed in the distribution of the marketing mix are as follows:distribution of the marketing mix are as follows:

The selection of the distribution channelsThe selection of the distribution channels Wholesalers, retailers, brokersWholesalers, retailers, brokers Exclusive distribution, Intensive distribution etc.,Exclusive distribution, Intensive distribution etc.,

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Determining the level of customer serviceDetermining the level of customer service Decisions with regard to delivery periods and Decisions with regard to delivery periods and

methods of transportationmethods of transportation Terms and conditions of distributionTerms and conditions of distribution Communications : Integrated Communications Communications : Integrated Communications

mix to link advertising, sales promotion, mix to link advertising, sales promotion, publicity and sponsorship together to convey a publicity and sponsorship together to convey a cohesive message to target markets, one in cohesive message to target markets, one in which each aspect supports other parts of the which each aspect supports other parts of the communications program.communications program.

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The relationship between Sales and The relationship between Sales and MarketingMarketing

Perhaps the most noticeable difference Perhaps the most noticeable difference between the pre- and post- marketing oriented between the pre- and post- marketing oriented company is the fact that sales are later seen to company is the fact that sales are later seen to be a part of the activity of the marketing be a part of the activity of the marketing functionfunction

Target market choiceTarget market choice Differential advantageDifferential advantage